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Delon Porcalla - The Philippine Star
April 13, 2026 | 12:00am
Gas flares from a drillship during the Camago-3 well flowback as part of the Malampaya phase 4 project, off the coast of Palawan.
MANILA, Philippines — Gas royalties of the national government from the Malampaya Deep Water Gas-to-Power Project can help augment and utilize the state-owned Philippine National Oil Co. (PNOC) and develop “new critical coastal petroleum storage facilities” to boost the country’s oil buffer stocks, according to a congressman.
“Following the successful drilling of two new gas wells by the Malampaya consortium, we have very high hopes that the government will continue to generate billions of pesos in annual royalties from the project in the years ahead,” House Minority Leader Marcelino Libanan said.
“These royalties are intended for the government’s energy resource development projects and programs, so the funds can be tapped to support PNOC’s coastal fuel storage facilities,” he said.
Citing data from the Budget of Expenditures and Sources of Financing (BESF), Libanan noted that the government collected a total of P200 billion in Malampaya royalties from 2014 to 2024, averaging P18.2 billion annually, during the 10-year period.
The government has yet to report the royalties collected for 2025.
The government receives 60 percent of the net proceeds from the Malampaya project, which are reported in the BESF as “Malampaya royalties.”
Libanan had earlier urged PNOC to invest in a strategic buffer stock of key petroleum products – mainly diesel, gasoline and aviation fuel – to help shield the country from sudden global oil supply disruptions and price shocks.
He said the petroleum reserves could be stored in new coastal infrastructure to be established by PNOC, particularly in the Visayas and Mindanao, and released into the market during times of crisis or emergency.
PNOC is covered by a law requiring all government-owned and controlled corporations to remit at least 50 percent of their annual net earnings as dividends to the national treasury.
PNOC continues to generate income primarily through its wholly owned subsidiary, PNOC Exploration Corp., which holds a 10 percent stake in the Malampaya project.
The Malampaya project remains a critical component of the Philippines’ energy strategy, providing a reliable source of indigenous natural gas for 20 percent of Luzon’s electricity requirements while helping reduce dependence on imported fuels.
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The House of Representatives’ multi-committee Legislative Energy Action Development Council is thinking of shifting at least 50 percent of government vehicles to electric, in light of the ongoing global energy crisis.
Rep. Miro Quimbo, chairman of the ways and means committee, told reporters this proposal forms part of a broader long-term strategy to make the economy more resilient against recurring oil price shocks.
